Canada Internet-Users and Usage 2011

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Executive Summary: In many respects, Canada is an online powerhouse.According to recent data, it has a higher proportion of the population online than the United States. In broadband penetration and affordability, it rivals the US and many other developed countries.Young Canadians are avid, experienced online users. Internet access in the workplace is beginning to catch up with healthy rates of household connection. Canadian consumers spend above- average time online and count themselves among the world’s keenest bloggers. 080260 But this picture obscures significant variations between younger and older Internet users and between regions. E-commerce, for example, has been slow to take off in the absence of retailers and online offerings that genuinely address Canadian tastes and requirements.Canada’s mobile networks and operators are not as well prepared as they should be to supply reliable data services at competitive prices.These and other social, technical and commercial obstacles threaten to hold Canada back when the country should be setting online standards for North America and the rest of the world. Issues & Questions How do Canada’s rates of Internet access and broadband penetration compare with those of the US and other countries? What are the most popular online activities of Canadian Internet users? What major differences exist between online habits in the English- and French-speaking parts of the country? What trends are emerging in Canadian e-commerce and mobile Internet use? Canada Internet: Users and Usage September 2007 Karin von Abrams, Senior Analyst [email protected] Internet Users and Penetration in North America, by Country, 2005-2011 (millions and % of population) 2005 2006 2007 2008 2009 2010 2011 US 175.4 181.9 188.1 193.9 200.1 206.2 211.3 % of population 61.9% 63.6% 65.2% 66.6% 68.1% 69.6% 70.6% Canada 20.0 21.0 21.8 22.6 23.3 24.1 24.8 % of population 61.0% 63.4% 65.3% 67.1% 68.5% 70.3% 71.9% Note: eMarketer uses historical data from the International Telecommunication Union (ITU) as a baseline; penetration figures are based on population estimates from the US Census Bureau's International Data Base (IDB); an Internet user is defined as someone who uses the Internet at least once per month Source: eMarketer, January 29, 2007 080260 www.eMarketer.com The First Place to Look Copyright ©2007 eMarketer, Inc. All rights reserved. The eMarketer View 2 The Economy 3 Internet Access 3 Broadband Penetration 5 The Online Audience 8 What Canadians Do Online 11 Conclusion 24 Related Information and Links 25 About eMarketer 25

description

In many respects, Canada is an online powerhouse.According to recent data, it has a higherproportion of the population online than the United States. In broadband penetration and affordability, it rivals the USand many other developed countries.Young Canadians are avid, experienced online users. Internet access in theworkplace is beginning to catch up with healthy rates of household connection. Canadian consumers spend above-average time online and count themselves among the world’s keenest bloggers.

Transcript of Canada Internet-Users and Usage 2011

Page 1: Canada Internet-Users and Usage 2011

Executive Summary: In many respects, Canada is an online powerhouse.According to recent data, it has a higher

proportion of the population online than the United States. In broadband penetration and affordability, it rivals the US

and many other developed countries.Young Canadians are avid, experienced online users. Internet access in the

workplace is beginning to catch up with healthy rates of household connection. Canadian consumers spend above-

average time online and count themselves among the world’s keenest bloggers.

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But this picture obscures significant variations between

younger and older Internet users and between regions.

E-commerce, for example, has been slow to take off in the

absence of retailers and online offerings that genuinely

address Canadian tastes and requirements. Canada’s mobile

networks and operators are not as well prepared as they

should be to supply reliable data services at competitive

prices.These and other social, technical and commercial

obstacles threaten to hold Canada back when the country

should be setting online standards for North America and

the rest of the world.

Issues & Questions

■ How do Canada’s rates of Internet access and broadband

penetration compare with those of the US and other countries?

■ What are the most popular online activities of Canadian

Internet users?

■ What major differences exist between online habits in the

English- and French-speaking parts of the country?

■ What trends are emerging in Canadian e-commerce and

mobile Internet use?

Canada Internet:Users and Usage

September 2007

Karin von Abrams,

Senior Analyst

[email protected]

Internet Users and Penetration in North America, byCountry, 2005-2011 (millions and % of population)

2005 2006 2007 2008 2009 2010 2011

US 175.4 181.9 188.1 193.9 200.1 206.2 211.3

% of population 61.9% 63.6% 65.2% 66.6% 68.1% 69.6% 70.6%

Canada 20.0 21.0 21.8 22.6 23.3 24.1 24.8

% of population 61.0% 63.4% 65.3% 67.1% 68.5% 70.3% 71.9%

Note: eMarketer uses historical data from the InternationalTelecommunication Union (ITU) as a baseline; penetration figures are basedon population estimates from the US Census Bureau's International DataBase (IDB); an Internet user is defined as someone who uses the Internetat least once per monthSource: eMarketer, January 29, 2007

080260 www.eMarketer.com

The First Place to Look Copyright ©2007 eMarketer, Inc. All rights reserved.

The eMarketer View 2

The Economy 3

Internet Access 3

Broadband Penetration 5

The Online Audience 8

What Canadians Do Online 11

Conclusion 24

Related Information and Links 25

About eMarketer 25

Page 2: Canada Internet-Users and Usage 2011

Canada Internet 2

The eMarketer View

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Canada is something of a conundrum where the Web is

concerned.The country embraced home Internet access and

broadband quite early. Large numbers of the online population

have taken to online banking, blogging and social networking.

Most school age Canadians—even very young ones—have been

well acquainted with the Internet for years.

But Canada has not followed the pattern of leading wired countries

in other ways. Historically, workplace access to the Internet has not

been nearly as common as home access in Canada, although the

gap is shrinking. Large parts of the country are not well served by

Internet connections.The French-speaking province of Quebec still

trails other regions in access and Internet use.

Despite, or perhaps because of, Canada’s proximity to the US,

e-commerce remains somewhat underdeveloped.

Business-to-business (B2B) sales are solid and growing.According

to eMarketer and other sources, over one-half of online Canadians

bought a product or service on the Internet in 2006. Until recently,

however, consumers found relatively little to attract them to

online stores.

For a start, almost no American brand retailers bothered to

understand the niceties of the Canadian market. Instead, they

expected people in Canada to accept the drawbacks of Web sites,

prices and delivery advice determined by US norms and trade

regulations. Canadians often could not tell what the final price of a

purchase would be or how long delivery might take.

Meanwhile, many Canada-based retailers hung back from

developing online retail operations, thinking they could wait until

others had established the market and got the ball rolling.

These two circumstances combined to leave Canada’s consumer

e-commerce in the doldrums for some time.

But the scene is changing as US-based stores look to Canada to

help bolster sales and profits when demand at home is declining.

Canadian retailers also realize there is a valuable market to play

for, with a good deal of pent-up demand.

It will take at least a year for Canada’s online marketplace to offer

the value and variety online consumers enjoy in the US, the United

Kingdom and many other countries.

The mobile sphere is another area where Canada ought to excel

but appears to be falling behind. Mobile operators are hard

pressed to find the cash to invest in larger and better networks, a

key challenge considering Canada’s size.

Operators have traditionally levied hefty fees for data downloads

compared with charges in most other countries.While the

government, operators, consumers and mobile phone makers are

trying to solve these issues, progress appears slow and difficult.

Key eMarketer Numbers — Canada Internet Usersand Usage

24.8 million Internet users in Canada in 2011, up from 21.0million in 2006

10.3 million Broadband households in Canada in 2011, upfrom 7.4 million in 2006

93.6% Broadband households as a percent of totalonline households in 2011, up from 87.1% in2006

63.0% Percent of Internet users in Canada who willpurchase online in 2009, up from 53.3% in 2006

C$1,438(US$1,295)

Average annual online spending* per Internetuser in Canada in 2009, up from C$1,007(US$891) in 2006

Note: Converted to US$ at average annual exchange rates (projected forfuture years); *includes spending on online travel, event tickets anddigital downloadsSource: eMarketer, 2006 & 2007

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Canada Internet 3

The Economy

In terms of gross domestic product (GDP),

Canada had the world’s eighth-largest economy

in 2006, according to the International Monetary

Fund’s World Economic Outlook Database as of

April 2007.

The country’s economic outlook in the medium term is strong.

Growth in real GDP is projected to average 2.6% per year through

2011 by the Economist Intelligence Unit (EIU).

The average exchange rate in 2006 was C$1.13 to US$1.00.The EIU

projects that the rate will average C$1.09 to US$1 in 2007, falling to

C$1.23 to US$1.00 by 2011.

Internet Access

Canada’s population was 33.4 million in July 2007,

according to the US Census Bureau.This total is

expected to rise by about 300,000 annually and

reach 34.8 million by 2012.

Where the Internet is concerned, Canada is one of the world’s

best-connected countries. eMarketer estimates that almost two-

thirds of Canadians used the Internet at least once a month in

2006, roughly the same proportion as in the US and Australia and

at least five percentage points more than in the UK. Only Japan

and South Korea could boast substantially higher rates of Internet

use that year.

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Internet Users and Penetration in Select CountriesWorldwide, 2006 (millions and % of population)

Internet users

Penetration

US 181.9 63.6%

China 133.5 10.2%

Japan 87.2 68.4%

Germany 39.4 47.8%

UK 35.1 57.9%

South Korea 34.4 70.5%

France 28.7 47.1%

Italy 28.6 49.2%

India 25.5 2.3%

Brazil 21.2 11.3%

Canada 21.0 63.4%

Mexico 20.0 18.6%

Spain 16.5 40.8%

Australia 13.1 64.5%

Argentina 7.9 19.8%

Rest of World 368.0 13.2%

Worldwide 1,080.0 16.6%

Note: eMarketer uses historical data from the InternationalTelecommunication Union (ITU) as a baseline; penetration figures are basedon population estimates from the US Census Bureau's International DataBase (IDB); an Internet user is defined as someone who uses the Internetat least once per monthSource: eMarketer, January 2007

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Canada Internet 4

Internet Access

eMarketer estimates that Internet penetration in Canada will

continue to rise steadily from 2007 through 2011, at between 1.4

and 1.8 percentage points per year.

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Although the overall numbers are relatively small, Canada

continues to post a high rate of online population growth, with

11% more Internet users in January 2007 than the year before,

according to comScore World Metrix.This double-digit growth is

unique among the developed countries where the Internet is

firmly established.

By contrast, the US online population is thought to have grown just

2% between January 2006 and January 2007.The Internet

populations of France and Germany appear to have gained less

than 5% during the same period, even though proportional

Internet penetration in these countries is lower than in Canada.

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In March 2007, the International Telecommunications Union (ITU)

put the number of Canadian Internet users even higher at 22

million, or 67.8% of the population. More recent comScore figures

indicate that user numbers rose 14% between June 2006 and June

2007 to reach 23.09 million.

A number of research firms and institutions concur: Internet use

is already strong in Canada, and the Canadians who are not

already online are joining at a rate more often seen in less

developed countries.

The annual “Broadcasting Policy Monitoring Report” by the

Canadian Radio-television and Telecommunications Commission

(CRTC), released in mid-2007, also paints a bright picture.

According to the CRTC, 70% of households in Canada subscribed

to the Internet in 2006, a 6% rise over the previous year.

Internet Users and Penetration in Canada, 2005-2011(millions and % of population)

2005 20.0 (61.0%)

2006 21.0 (63.4%)

2007 21.8 (65.3%)

2008 22.6 (67.1%)

2009 23.3 (68.5%)

2010 24.1 (70.3%)

2011 24.8 (71.9%)

Note: eMarketer uses historical data from the InternationalTelecommunication Union (ITU) as a baseline; penetration figures are basedon population estimates from the US Census Bureau's International DataBase (IDB); an Internet user is defined as someone who uses the Internetat least once per monthSource: eMarketer, January 29, 2007

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Top 15 Countries Worldwide, Ranked by InternetUsers, January 2006 & January 2007 (thousands ofunique visitors and % change)

January 2006

January 2007

% change

1. US 150,897 153,447 2%

2. China 72,408 86,757 20%

3. Japan 51,450 53,670 4%

4. Germany 31,209 32,192 3%

5. UK 29,773 30,072 1%

6. South Korea 24,297 26,350 8%

7. France 23,712 24,560 4%

8. India 15,867 21,107 33%

9. Canada 18,332 20,392 11%

10. Italy 15,987 18,106 13%

11. Brazil 12,845 14,964 16%

12. Spain 12,206 12,710 4%

13. Russia 10,471 12,707 21%

14. Netherlands 10,772 11,077 3%

15. Mexico 8,624 10,149 18%

Total Worldwide 676,878 746,934 10%

Note: ages 15+; home, work and university locations; excludes traffic frompublic computers (eg Internet cafes) and access from mobile phones orPDAsSource: comScore World Metrix as cited in press release, March 6, 2007

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Canada Internet 5

Internet Access

Canadians have always accessed the Internet far more at home

than at work. In 2005, for example, roughly 61% of the total

population age 18 and older was online at home, according to

Statistics Canada. Only an additional 7% of respondents said they

went online from other locations such as school, work, libraries

and Internet cafes.

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Internet access at work has risen as more businesses move online

to improve communications and efficiency. By 2006, 45% of the

online population was using an Internet connection at work,

compared to 38% three years earlier, according to the “Ipsos

Canadian Inter@ctive Reid Report.”

comScore Media Metrix recently compared home and work

Internet use in the second quarter of 2007. Its figures suggest that

almost 22 million Canadians were accessing the Web from home,

and 8.2 million had access from work only.

The average number of unique visitors accessing the Internet

from work increased 15% between the second quarter of 2006

and the second quarter of 2007, whereas the average number of

visitors using home access rose 10%, according to comScore.

Broadband Penetration

By any standard, Canada is well served by

broadband technology. Figures from Ipsos Insight

indicate that more than seven in 10 active

Canadian Internet users had a high-speed

connection in the last two months of 2006.This

figure mirrored the level of broadband access in

the US, although Canada had a lower percentage

of its population using a dial-up connection.

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The number of dial-up connections continues to fall steadily.

eMarketer calculates that by the end of 2007, at least 88% of all

Canadians who go online will use a broadband connection.This

number will rise to 95% in 2011.

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Demographic Profile of Adult Internet Users inCanada, by Access Location, 2005 (% of respondentsin each group)

Home Total*

Gender

Male 61.5% 68.0%

Female 60.3% 67.8%

Age

18-34 77.3% 88.9%

35-54 68.3% 75.0%

55-64 49.3% 53.8%

65+ 22.5% 23.8%

Education

Less than high school 26.5% 31.2%

High school or college 63.9% 72.0%

University degree 83.4% 89.4%

Income

<C$13,000 52.3% 58.7%

C$13,001-C$26,999 50.2% 56.9%

C$27,000-C$45,999 63.4% 71.3%

C$46,000+ 77.7% 83.2%

Total 60.9% 67.9%

Note: *home, school, work, public library or other; excludes residents ofthe Yukon, Northwest and Nanuet Territories, inmates of institutions,persons living on Indian Reserves and full-time members of the CanadianArmed ForcesSource: Statistics Canada,"Canadian Internet Use Survey (CIUS)," August15, 2006

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Active* Internet Users in Select Countries Worldwide,by Primary Access Technology, November-December2006 (% of respondents)

High-speed Dial-up Wireless access/service

Other or don't know

Brazil** 46% 43% 6% 5%

Canada 71% 16% 6% 7%

China** 79% 15% 4% 2%

France 70% 25% 3% 2%

Germany 84% 10% - 6%

India** 40% 46% 11% 3%

Japan 89% 11% - -

Mexico** 34% 44% 6% 16%

Russia** 26% 52% 18% 4%

South Korea 80% 4% 7% 9%

UK 57% 15% 9% 19%

US 71% 19% 6% 4%

Note: *in the past month; **urban sampleSource: Ipsos Insight, "The Face of the Web 2006," April 18, 2007

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Broadband vs. Dial-Up Internet Users in Canada,2005-2011 (millions)

2005 2006 2007 2008 2009 2010 2011

Dial-up 3.8 2.9 2.5 2.1 1.6 1.3 1.2

Broadband 16.2 18.1 19.3 20.5 21.7 22.8 23.6

Total 20.0 21.0 21.8 22.6 23.3 24.1 24.8

Note: eMarketer defines an Internet user as a person ages 3+ whoaccesses the Internet at least once per month; broadband includes ADSL,cable, satellite, fixed wireless, fiber, powerline, WiMAX and emergingbroadband technologies accessed at homeSource: eMarketer, January 12, 2007

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Canada Internet 6

Broadband Penetration

The “Global Entertainment and Media Outlook: 2007-2011” report,

published by PricewaterhouseCoopers (PwC) in collaboration with

Wilkofsky Gruen Associates (WGA), defines the access market in

subscriptions (that is, as households, since a household typically

has one Internet subscription shared by all who live there).

PwC suggests that broadband subscriptions will continue to grow

at double-digit rates during 2007 and 2008.According to these

data, broadband should pass the 70% penetration milestone by the

end of 2008 and dominate the Canadian market completely by

2011. PwC projects that 85% of all households will have high-speed

access in 2011, leaving just 600,000 dial-up households.

Figures on broadband penetration released by the Organization for

Economic Cooperation and Development (OECD) place Canada in

ninth position among the countries it covers, based on the

percentages of subscribers using DSL, cable and other high-speed

connections.This placing is well ahead of the US and even Japan but

significantly behind South Korea and several European countries.083357

Since these figures were issued, the methodology used by the

OECD—which focuses purely on the adoption rate of broadband

connections—has sparked debate about what criteria should be

used to determine the rankings and what they aim to demonstrate.

The Information Technology and Innovation Foundation (ITIF) has

argued that “a more complete measure would also consider

speed and price. Increasingly, in the digital economy it is the speed

and capacity of the network that matters.”The OECD tracks cost

and speed of connections but does not include them in its overall

broadband rankings.The number of subscribers per household is

also relevant.

Broadband Subscriber Penetration in OECD Countries,by Access Technology, December 2006 (% ofpopulation)

DSL Cable Other Total

Denmark 19.6% 9.4% 0.4% 31.9%

Netherlands 19.5% 12.0% 0.0% 31.8%

Iceland 28.8% 0.0% 0.6% 29.7%

South Korea 11.4% 10.7% 0.0% 29.1%

Switzerland 18.8% 8.8% 0.9% 28.5%

Norway 21.7% 3.8% 0.6% 27.7%

Finland 23.5% 3.5% 0.3% 27.2%

Sweden 16.0% 5.2% 4.8% 26.0%

Canada 11.4% 12.3% 0.1% 23.8%

Belgium 14.0% 8.4% 0.1% 22.5%

UK 16.5% 5.1% 0.0% 21.6%

Luxembourg 18.2% 2.2% 0.0% 20.4%

France 19.1% 1.1% 0.0% 20.3%

Japan 11.1% 2.8% 0.0% 20.2%

US 8.5% 10.3% 0.6% 19.6%

Australia 15.0% 3.3% 1.0% 19.2%

Austria 10.6% 6.4% 0.3% 17.3%

Germany 16.4% 0.5% 0.1% 17.1%

Spain 12.1% 3.1% 0.1% 15.3%

Italy 13.8% 0.0% 0.6% 14.8%

New Zealand 12.7% 0.6% 0.7% 14.0%

Portugal 8.7% 5.1% 0.0% 13.8%

Ireland 9.1% 1.3% 2.0% 12.5%

Hungary 6.1% 3.8% 2.0% 11.9%

Czech Republic 4.8% 2.1% 3.7% 10.6%

Poland 5.2% 1.6% 0.1% 6.9%

Slovak Republic 3.4% 0.7% 0.2% 5.1%

Greece 4.4% 0.0% 0.2% 4.6%

Turkey 3.8% 0.0% 0.0% 3.8%

Mexico 2.7% 0.8% 0.0% 3.5%

OECD 10.5% 4.9% 0.3% 16.9%

Source: OECD, April 23, 2007

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Canada Internet 7

Broadband Penetration

The ITIF’s revised rankings give a far more rounded picture of how

well each country is served by broadband offerings. Note that

Japan leaps into second place here, chiefly because of its high-

speed connections and price per bit (the lowest in the world).

Canada slips one place, to 10th, thanks to a solid but not

outstanding performance in all categories.

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This analysis strengthens the conclusion that Canada enjoys a

healthier broadband situation than the US. Prices are higher in

Canada, but in the US both average speed and number of

subscribers per household are below Canadian levels, thus the

country as a whole is less efficient in broadband terms.

A less obvious sign that Canada is better served by broadband than

the US is the age of people using it. Figures published in 2007 by

Google Canada and Media-Screen indicate that overall Canadian

broadband consumers tend to be younger than those in the US.

The study found that 15% of broadband users in Canada were

18- to 24-years-old. But in the US just 9% of broadband users fall

into this age group, as the majority of users are older members of

the working population.That is good for the current state of the

nation in many ways but less good for the future.

As younger people complete their education and enter the

economy, high-speed access to online resources will be crucial to

their success. For now at least, young Canadians are more likely to

benefit from those resources.

eMarketer anticipates that Canada will continue to outperform the

US in overall broadband penetration through 2011 and beyond.

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Moreover, PwC predicts that fees for broadband in Canada will

stay low in real terms compared to those in other countries. PwC

estimated that the average broadband subscription in Canada in

2006 costs just US$16.75 (C$18.93) per month, one of the lowest

rates in the world.

Moreover, these researchers anticipate that Canadian broadband

costs will show a compound annual growth rate of just 0.2% in US

dollars for the five years beginning in 2006, resulting in a projected

average cost of only US$16.92 (C$20.81) per month in 2011.This

rate of increase will make broadband progressively more

affordable for Canadians and encourage further uptake.

Top 20 OECD (1) Countries, Ranked by BroadbandMetrics, 2006

Subscribers per

household (2)

Average speed

(Mbps) (3)

Price per

month (4)

Overall score (5)

1. South Korea 0.90 45.6 $0.45 15.73

2. Japan 0.52 61.0 $0.27 14.99

3. Iceland 0.83 6.0 $4.99 12.14

4. Finland 0.57 21.7 $2.77 12.11

5. Netherlands 0.73 8.8 $4.31 11.87

6. Sweden 0.49 18.2 $0.63 11.54

7. France 0.49 17.6 $1.64 11.41

8. Denmark 0.70 4.6 $4.92 11.37

9. Norway 0.64 7.4 $4.04 11.29

10. Canada 0.62 7.6 $6.50 11.11

11. Belgium 0.54 6.2 $6.69 10.60

12. US 0.51 4.8 $3.33 10.47

13. Switzerland 0.68 2.3 $21.71 10.40

14. Australia 0.50 1.7 $2.39 10.23

15. Austria 0.42 7.3 $5.99 10.08

16. Portugal 0.42 8.1 $10.99 9.92

17. UK 0.50 2.6 $11.02 9.92

18. Germany 0.38 6.0 $5.20 9.81

19. Italy 0.38 4.2 $3.36 9.78

20. Luxembourg 0.51 3.1 $18.48 9.71

Note: (1) Organization for Economic Cooperation and Development; (2)OECD measures penetration on a per capita basis because comprehensivedata on household penetration is generally unavailable; ITIF has usedaverage household size as a multiplier to convert OECD per capitapenetration data to household penetration data; it should be noted thatone problem with this method is that the OECD data likely also includessome DSL business subscribers; (3) methodology for calculating broadbandspeed involves averaging the speeds of the incumbent DSL, cable and fiberofferings provided in OECD's April 2006 "Multiple Play" report, with eachassigned a weight according to that technology's respective percentage ofthe nation's overall broadband subscribership, as reported in OECD's"Broadband Statistics to December 2006;" for nations that did not have alisted fiber speed in the "Multiple Play" report but had fiber subscribers, aspeed of 10 Mpbs was assigned; (4) price per month for 1 Mbps usingfastest technology (US$ PPP); (5) each nation's overall score is the sum ofits standard deviation score for each of the three indicatorsSource: The Information Technology & Innovation Foundation (ITIF) report,"Assessing Broadband in America: OECD and ITIF Broadband Rankings,"April 2007

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Broadband Households and Penetration in NorthAmerica, by Country, 2005-2011 (millions and % oftotal households)

2005 2006 2007 2008 2009 2010 2011

US 43.9 54.6 65.0 74.1 81.1 86.2 89.9

% of total households 37.6% 45.9% 53.6% 60.1% 64.6% 67.6% 69.3%

Canada 6.4 7.4 8.1 8.7 9.3 9.8 10.3

% of total households 50.5% 58.0% 62.6% 66.7% 70.4% 73.8% 76.7%

Note: eMarketer defines "broadband" as an Internet connection of 200kbps in at least one direction; includes ADSL, cable, satellite, fixed wireless,fiber, powerline, WiMAX and emerging broadband technologies accessedat homeSource: eMarketer, March 12, 2007

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Canada Internet 8

The Online Audience

eMarketer has calculated that Canada’s Internet

population passed 21 million at the end of 2006

and that roughly two-thirds of Canadians are now

online.Within certain age and income groups,

that proportion is far higher.

In fact, the Internet found many early adopters in Canada. In 2001,

82% of Canadian adults age 18 to 54 already had access to the

Internet, according to Ipsos Reid. By 2006, nearly nine in 10 of the

same age group had access.

During the same period, uptake among Canadians 55 and older

rose more dramatically, although the proportion of older people

online is still much lower overall.

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This has important implications for Canada’s Internet use and

online economy in the longer term. Statistics Canada calculated

that the number of Canadians 55 and older will double between

2005 and 2025.

In particular, the 59-to-64 age group is the fastest-growing

demographic, so there are clear opportunities for providers of

goods and services to an older population. Many of these older

Canadians enjoy a relatively high standard of living and value the

opportunity to save time and effort when shopping or booking

travel, for example.

If the digital divide is not bridged, however, many older citizens will

be put at a disadvantage. Government services will not be

delivered effectively to those unable to access online resources

and information.The benefits of e-commerce and other online

facilities will also bypass older people if they cannot be helped to

use the Internet with confidence.

A large majority of Canadians under 18 are also online and have

been for some time.The “Young Canadians in a Wired World”

study, carried out by the Media Awareness Network, which

canvassed more than 5,200 young people in grades 4 to 11 in

French and English language schools across the country, found

that Internet access in this group was “almost universal” as long

ago as 2005.

In that year, 94% of young people said they went online from

home, and 61% said they had high-speed access. Just over

one-half of grade 11 students said they were able to access the

Internet through their personal computer.

Internet uptake does vary substantially from one part of Canada to

another.The relatively low level of Internet use in Quebec has

been an issue for some years. Many analysts have concluded that

the language barrier is to blame, but other regional characteristics

may play a part as well.

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Some observers have suggested that the province is risk averse,

adopting a wait-and-see attitude to new technology until it is proved

elsewhere.Also, Quebec seems to have different cultural priorities.

Monique Charbonneau, president of the Centre francophone

d’informatisation des organizations (CEFRIO), a consortium that

encourages the use of IT in Canada’s French-speaking areas, was

quoted in The Montreal Gazette in February 2007 as saying, “We

take risks here more in the cultural spheres. Look at Cirque du

Soleil and Quebec cinema.We excel at those. Science and

technology aren’t as important here as they are in the Anglo-

Saxon societies.”

Whatever the reasons for Quebec’s slow start online, the province

is beginning to catch up with the rest of the country.

Adults in Canada with Internet Access, by Age, 2001 &2006 (% of respondents in each group)

2001

82%

48%

2006

88%

61%

18-54 55+

Note: from any locationSource: Ipsos Reid, "Older Canadians and the Internet" as cited in pressrelease, February 15, 2007

081097 www.eMarketer.com

Adult Internet Users in Canada Who Go Online AtLeast Once a Week, by Province, 2006 (% ofrespondents)

British Columbia 66%

Alberta 65%

Ontario 63%

Manitoba/Saskatchewan 55%

Atlantic 53%

Quebec 49%

Note: ages 16+Source: BBM Analytics, "CyberTRENDS," December 2006 as cited byCanadian Radio-television and Telecommunications Commission (CRTC),"Broadcasting Policy Monitoring Report 2007," December 2006

086480 www.eMarketer.com

Page 9: Canada Internet-Users and Usage 2011

Canada Internet 9

The Online Audience

According to the ITU, overall Canadian Internet penetration in

December 2006 was 67.8%.This is not far from the 65.8% of adults

in Quebec who used the Internet regularly in 2006, according to

the “NETendances 2006” report published by CEFRIO in

collaboration with Léger Marketing.The percentage of Quebecers

going online rose to 71.5% in November 2006 and 72.3% in June

2007, according to CEFRIO.

086481

Among those polled for the study, 76% had a computer at home,

and more than 19% planned to get a new one during the coming

year.Two-thirds (67%) of Quebec adults said they had an Internet

connection at home in 2006, and 86% of these adults subscribed

to a high-speed service, according to CEFRIO. High-speed cable

connections were used by 32% of Quebecers in 2006, up from

25% in 2005.

Quebec does not buck all the trends, however.

Some common demographic patterns mirror those in the rest of

Canada. For example, Internet access is highest among young

people. Of Quebecers age 18 to 24, 97% go online. Further, Internet

use is correlated with household income.Almost nine in 10

households in Quebec with an annual income over C$60,000

(US$55,045) are connected, and homes with less than C$20,000

(US$18,350) per year have a connection rate of about 40%.

Despite regional variations, there is no question that, as a country,

Canadians have taken to the Internet in a big way.

comScore World Metrix recently calculated that Canada leads the

world in the average amount of time spent online each month by

unique Internet users. Broadband users in particular appeared to

be the only national group in the world clocking up more than 40

hours a month on average.

081596

Not surprisingly, it is the audience under 55 that spends more time

online, according to Ipsos Reid.This gap has not diminished

significantly since 2001.

081098

Active* Adult Internet Users in Quebec, by Month,2006 (% of population)

January 64.3%

February 63.9%

March 64.8%

April 63.9%

May 68.4%

June 64.8%

July 62.4%

August 65.2%

September 64.4%

October 67.3%

November 71.5%

December 68.4%

Note: n=1,000 adult residents of Quebec chosen and polled each month;*have used the Internet at least once during the previous weekSource: Centre francophone d'informatisation des organizations (CEFRIO),"NETendances 2006," conducted by CEFRIO and Léger Marketing, February2007

086481 www.eMarketer.com

Top 10 Countries Worldwide, Ranked by AverageMonthly Hours Online per Unique Visitor, by AccessTechnology, January 2007

Broadband users

Narrowband users

Total users

1. Canada 41.3 14.2 39.6

2. Israel 38.8 10.9 37.4

3. South Korea 36.1 na* 34.0

4. US 37.2 13.5 31.6

5. UK 35.6 7.5 31.2

6. Chile 38.6 12.6 30.9

7. Brazil 38.5 17.0 30.2

8. Finland 34.2 na* 28.7

9. Spain 33.4 9.1 27.9

10. Sweden 31.4 9.7 27.5

Note: ages 15+; home, work and university locations; excludes traffic frompublic computers (eg Internet cafes) and access from mobile phones orPDAs; *level of narrowband penetration is very low therefore an accuratereportable estimate is not availableSource: comScore World Metrix as cited in press release, March 6, 2007

081596 www.eMarketer.com

Weekly Time Spent Online by Adult Internet Users inCanada, by Age, October 2006 (hours)

18-54 13.3

55+ 8.7

Source: Ipsos Reid, "Older Canadians and the Internet" as cited in pressrelease, February 15, 2007

081098 www.eMarketer.com

Page 10: Canada Internet-Users and Usage 2011

Canada Internet 10

The Online Audience

In some ways, the older generation is holding its own.A study by the

insurance group AXA found that Canadian retirees were second

only to those in the US in hours spent online each week in 2006.

080904

Another recent Ipsos Reid survey probed the issue of whether

adults in Canada thought their skill levels were up to the challenge

of the Internet and whether they were keeping up with

technological change. Some results were encouraging.

For example, three-quarters of Canadian adults said they were

“fairly” or “very” skilled at using the Internet.The remaining 25%

thought they could be described as “not very” or “not at all” skilled.

Generally, older online Canadians confessed they felt less

experienced and adept at Internet skills. Only 13% of respondents

55 and older claimed to be “expert” or “very skilled,” compared

with 35% of 18- to 54-year-olds.

But all adults acknowledged that it was hard to stay on top

of change.

Less than one in 10 thought they were “significantly ahead of the

curve” as technology evolved around them. More than one-third

said they had to work to keep up, and a similar percentage said

they were just managing not to fall behind.Almost one in five said

there was a significant gap between their knowledge and the pace

of change.

081921

Average Number Hours per Week Spent Online byRetired Adults in Select Countries Worldwide, 2006

US 9

Australia 7

Canada 7

UK 6

New Zealand 6

China 5

France 5

Germany 4

Japan 3

Italy 2

Spain 2

Note: includes people under the age of 75 who are retired or in earlyretirementSource: AXA Group, "Global Retirement Scope 2007 Retirement, a new lifeafter work?," January 1, 2007

080904 www.eMarketer.com

Ability of Adult Consumers in Canada to Keep Pacewith Technology Change, January 2007 (% ofrespondents)

Significantly ahead of the curve 8%

Ahead of the game but have to work to keep up 36%

Barely keeping up to speed 34%

Falling significantly behind 19%

Note: n=1,000Source: Ipsos Reid, "Canadian Inter@ctive Reid Report" as cited in pressrelease, March 14, 2007

081921 www.eMarketer.com

Page 11: Canada Internet-Users and Usage 2011

Canada Internet 11

What Canadians Do Online

E-mail remains one of the most popular online

activities in Canada.

The “CyberTRENDS” report, published by BBM Analytics, claims

that, as of December 2006, 90% of Internet users in Canada were

sending or receiving e-mail.

In the same month, more than three-quarters of Canadians online

researched products and services, 80% visited sites of interest

and 86% searched for specific information.According to the

report, Canadian Internet users spent on average about 54% of

total online time visiting Canadian sites.

An Ipsos Reid survey carried out in the third quarter of 2006 also

points to the variety of ways Canadians use the Internet.This

survey did not gather data about e-mail use (perhaps because

e-mail is taken for granted). Many of the activities that users were

asked about did not figure in the “CyberTRENDS” survey.

For this reason, the two surveys do not offer much mutual

corroboration.Taken together, however, they appear to confirm

that Canadians are transferring personal and family activities

online to an extraordinary degree.

More than one-half of the Ipsos Reid respondents said they

comparison-shopped online, bought goods and services, explored

courses or looked for real estate. Many listened to the radio,

downloaded music, uploaded photos or played games.At least

three in five had researched travel online or carried out banking

transactions, the two most popular activities in this sample.

084678

Online Activities of Internet Users in Canada, Q3 2006(% of respondents)

Online banking transactions

62%

Researched trip online

60%

Comparison shopped

52%

Searched for/viewed real estate

51%

Purchased a product or service directly online

50%

Researched courses, schools, degrees or diplomas

50%

Listened to Internet radio

48%

Used the Internet at work for personal reasons

43%

Used online photo service

42%

Purchased element of travel online

41%

Downloaded MP3 file for free

40%

Visited a blog

36%

Visited home for sale first found online

33%

Played poker online for fun

17%

Downloaded MP3 file for a fee

16%

Taken a course directly online

15%

Bought/sold investments

14%

Earned a degree/diploma/certificate online

4%

Played poker online for money

3%

Placed a sports wager online for money

2%

Note: n=888 adults with Internet accessSource: Ipsos Reid, "The 2006 Canadian Inter@ctive Reid Report" FactGuide, March 2007

084678 www.eMarketer.com

Page 12: Canada Internet-Users and Usage 2011

Canada Internet 12

What Canadians Do Online

Among Quebecers, too,banking operations were the most popular

Internet transactions. In July 2006,38.1% made such transactions

online,up from 35.7% in July 2005,according to CEFRIO. (Note,

however, that this is still a far cry from the 62% of the overall Canadian

online population who banked online in the third quarter of 2006.)

It must be said that older Canadians are not involved in many of

these activities to the same degree as younger people. In fact, they

lag behind younger Internet users in almost all cases. Just 21% of

Canadian Internet users 55 and older have participated in online

banking, and 34% have listened to radio online.

A similar number (32%) have downloaded free MP3 files, and 17%

used the Internet to research travel, the same proportion who

went online at work for personal reasons. Less than one-quarter

(23%) said they had visited blog sites, and a mere 14% had bought

something online.

On the other hand, Canadians 55 and older are actually more likely

to participate in some activities than the younger online population.

These activities include taking courses online (the participation rate

of older users is 3% higher), buying or selling investments (also 3%

higher) and earning a degree or diploma online (4% higher).

Only 20% of Internet users 55 and older said they comparison-shopped

online.Another study,however,suggest that, in the wider population of

Internet users,more than one-half are comparison-shopping.

Further, more than one-half of Canadians age 30 and older polled

in December 2006 said they used the Internet at least once a week

to search for products, services, jobs or community information.

Almost three-quarters said they performed these kinds of

searches at least once a month.

080139

A report by Google Canada and Media-Screen has yielded an even

more striking statistic: 98% of Canadians now search the Internet

looking to purchase products and services.This kind of search is

part of roughly five hours that Canadians spend on the Internet

during a typical five-day week, Monday to Friday.

This online poll surveyed 1,002 adults age 18 and older.All

respondents were required to have a broadband connection and

to have researched or purchased a product or service online, both

of which criteria may have a bearing on the results.

The Web’s role as a source of information about users’ local

facilities and services is growing, too.The Léger Marketing report

cited earlier found that a large number of Canadians turn to the

Internet even for information that might be available from local

newspapers, radio stations or other offline sources close to hand.

080140

As with online banking, most activities are less popular among

French-speaking residents than in Canada as a whole. For

example, e-mail is one of the most popular online activities in

Quebec, but the percentage of the online population using e-mail

was just 60% at the end of 2006, one-third less than in the wider

Canadian population.

086492

Minimum Frequency with which Adult Internet Usersin Canada Use the Internet to Search for Products toPurchase, Services, Jobs or Community Information,December 2006 (% of respondents)

Weekly 54%

Monthly 73%

Note: n=1,000 ages 30+Source: Léger Marketing commissioned by Kijiji Canada, January 16, 2007

080139 www.eMarketer.com

Adult Internet Users in Canada Who Use the Internetto Search for Local Services or View CommunityPostings and Events, December 2006 (% ofrespondents)

Search for local services 69%

View community postings and events 54%

Note: n=1,000 ages 30+Source: Léger Marketing commissioned by Kijiji Canada, January 16, 2007

080140 www.eMarketer.com

Select Online Activities of Adult Internet Users inQuebec, March, June & December 2006 (% ofrespondents)

Used e-mail to get in touch with parents or friends

58.2%

60.5%

60.3%

Participated in a chat room

27.4%

27.7%

30.2%

Listened to or downloaded music

20.5%

19.1%

25.8%

Played games

13.4%

14.1%

16.0%

Watched or downloaded videos

12.9%

11.7%

15.8%

March 2006 June 2006 December 2006

Note: n=1,000 adult residents of Quebec chosen and polled each monthSource: Centre francophone d'informatisation des organizations (CEFRIO),"NETendances 2006," conducted by CEFRIO and Léger Marketing, February2007

086492 www.eMarketer.com

Page 13: Canada Internet-Users and Usage 2011

Canada Internet 13

What Canadians Do Online

Quebecers spent 6.1 hours online each week for personal reasons

in June 2006, according to CEFRIO. News and information sites

were among the most popular destinations, with 35.2% of surfers

visiting them regularly.

In May 2006, 39.1% of Quebec residents said they planned to go

online to arrange travel, compared with 60% of Canadians overall

in the third quarter of 2006, according to Ipsos Reid.

The increasing usefulness of the Internet in so many areas means

that large numbers of Canadians can hardly imagine life without it.

More than one-third of adults polled in January 2007 said going

online was “an important part of their daily routine.”About one-

quarter believed that if they did not learn more about the Internet

they would be “left behind” as the effect of the online channel

grows in the world around them.

081925

As life online becomes second nature to most Canadians, Internet

use is increasingly overlapping with other activities.

Multitasking online is especially prevalent among English-

speaking Canadian tweens, more than one-third of whom

frequently watch TV—or have the TV on—while they surf.

One-quarter listen to music while they are online. Only two in

five of these 7- to 12-year-olds do not combine Internet use with

other tasks or leisure activities, according to the Solutions

Research Group.

081294

In fact, Canadians of all ages are now multitasking in similar ways,

according to BBM Analytics. Listening to the radio while online is

especially popular.

086493

Multitasking Activities of Tweens in English-SpeakingCanada While Using the Internet, September 2006 (%of respondents)

Watching TV 34%

Music (not radio) 25%

Gaming 18%

Using a phone 10%

Reading 7%

Radio 3%

Other 1%

None 41%

Note: ages 7-12 who use the Internet; days from 6 am-11 pmSource: Solutions Research Group, "Tween Media Usage" commissioned byYTV, January 2007

081294 www.eMarketer.com

Adult Internet Users in Canada Who Perform OtherActivities "Often" or "Sometimes" While Accessingthe Internet, by Age, 2006 (% of respondents)

Watch TV

Listen to radio

16-24 41% 46%

25-34 33% 37%

35-44 30% 34%

45-54 22% 28%

55-64 15% 34%

65+ 12% 21%

16+ 25% 33%

Source: BBM Analytics, "CyberTRENDS," December 2006 as cited byCanadian Radio-television and Telecommunications Commission (CRTC),"Broadcasting Policy Monitoring Report 2007," December 2006

086493 www.eMarketer.com

Attitudes of Adult Consumers in Canada toward theInternet, January 2007 (% of respondents)

Using the Internet is an important part of their daily routine

35%

If they don't find out more about the Internet they will be leftbehind

26%

Don't know how people before me lived without the Internet

16%

Perfer to talk to people via e-mail than by any other method

13%

Note: n=1,000Source: Ipsos Reid, "Canadian Inter@ctive Reid Report" as cited in pressrelease, March 14, 2007

081925 www.eMarketer.com

Page 14: Canada Internet-Users and Usage 2011

Canada Internet 14

What Canadians Do Online

Of course broadband also helps to shift radio and other music,TV,

video and games online.Thus Internet users can easily engage in

these activities simultaneously without leaving their computers. In

this realm, too, it tends to be younger male users who are in the

vanguard; older users and women are less likely to be accessing

music,TV or video online.

086495086497

A recent study from the Solutions Research Group appears to

confirm that accessing multimedia online is now becoming

mainstream.This study concluded that, as of May 2007, more than

three million Canadians had uploaded video to a site and that just

over 40% downloaded a music file that month, up from 38% in

September 2006.

Blogging

Perhaps curiously, for a nation whose people are often seen as

reserved, at least in contrast to their neighbors to the south,

Canadians have become enthusiastic bloggers.

A survey of select countries by comScore Media Metrix and

iMedia Connection found that in October 2006 Canada had the

highest percentage of its online population visiting blog sites.

079432

The Blog Herald, an online source, published results of an informal

survey into blog numbers in several countries.According to the

compiler, Canada was among the top 10 countries in the world for

blog authorship in July 2006.

086503

These approximate numbers are bound to have risen in the year

since the information was compiled.

Online Audio and Video Activities of Adult InternetUsers in Canada, by Gender, 2006 (% of respondents)

Male Female

Download/listen to music 36% 26%

Watch videos 37% 21%

Listen to radio 25% 19%

Watch TV on the Internet 8% 3%

Download movies 7% 3%

Download TV programs 6% 2%

Source: BBM Analytics, "CyberTRENDS," December 2006 as cited byCanadian Radio-television and Telecommunications Commission (CRTC),"Broadcasting Policy Monitoring Report 2007," December 2006

086495 www.eMarketer.com

Online Audio and Video Activities of Adult InternetUsers in Canada, by Age, 2006 (% of respondents)

18-24 25-34 35-44 35-54 55-64 65+

Download/listen to music 77% 40% 34% 23% 16% 13%

Watch videos 53% 36% 31% 26% 16% 18%

Listen to radio 33% 30% 25% 18% 14% 12%

Download movies 19% 8% 4% 2% 4% 1%

Watch TV on the Internet 14% 8% 6% 4% 2% 4%

Download TV programs 12% 6% 3% 2% 1% 4%

Source: BBM Analytics, "CyberTRENDS," December 2006 as cited byCanadian Radio-television and Telecommunications Commission (CRTC),"Broadcasting Policy Monitoring Report 2007," July 2007

086497 www.eMarketer.com

Blog Web Site Visitors in Select Countries Worldwide,October 2006 (% of Internet users)

Canada 58.2%

Spain 51.4%

France 45.6%

UK 45.1%

Netherlands 44.3%

US 36.3%

Italy 30.7%

Germany 26.7%

Source: comScore Media Metrix as cited by iMedia Connection, December14, 2006

079432 www.eMarketer.com

Top 10 Blogging Countries Worldwide, Ranked byNumber of Blogs, July 2006 (millions)

1. US 15.0-30.0

2. South Korea 15.0

3. China 5.0

4. Japan 4.0

5. France 3.0

6. UK 2.5

7. Spain 1.5

8. Poland 1.4

9. Canada 0.7

10. Netherlands 0.6

Source: Blog Herald as cited by A Free and Decent Blog Host, January 2,2007

086503 www.eMarketer.com

Page 15: Canada Internet-Users and Usage 2011

Canada Internet 15

What Canadians Do Online

One survey on blogging in the first quarter of 2007, the “Ipsos

Canadian Inter@ctive Reid Report,” concluded that there are now

more than 15 million blogs associated with Canadian sites (although

not all these will necessarily be Canadian-authored blogs).

Moreover, roughly one in five Canadian Internet users had visited

a blog site on the day they were polled, and more than 20% had

done so in the previous week.

085955

The same study profiled those who looked at blogs and

compared their profile with larger demographic groups. Blog

visitors are marginally more likely to be male than female, and

younger Canadians show more interest than older Internet users.

Blogs also attract proportionately more visitors with higher

educational qualifications.

085957

Recent figures from TNS also point to a relatively young audience

for blogs.Almost three-quarters of Canadian online users

between 13 and 17 said they visit blog sites, and this proportion

falls off only slightly among 18- to 29-year-olds.

084788

Teens are also the most likely to post comments on blogs.

According to TNS, 31% of online teens have made a blog posting.

Blogs are gradually attracting more adults, however. Ipsos Reid

found that of those adults who said they had never visited a blog,

24% also said they were “somewhat” likely to do so in the next 12

months and 7% were “very” likely to.

TNS data suggest that 55% of Canadians 50 and older who read

blogs have also commented on them.

Blogs are also growing in popularity among residents of Quebec,

although less dramatically. In 2006, 19.8% of Quebecers polled by

CEFRIO claimed to have visited blog sites, compared with 12.3%

in 2005.

TNS data suggest that blog site visits by residents of French-

speaking areas in Canada rose 74% between July 2005 and July

2006, and visits by English speakers rose 82%.

More than one-half of Canadians in the Ipsos Reid study used a

search engine to find a blog rather than learn about one from

friends or colleagues.This intriguing finding could represent a real

opening to advertisers because in many cases search engine

marketing is already central to their online strategy.

If advertisers can harness the power of word of mouth and

lead potential customers from search environments to suitable

blogs, it should greatly strengthen their hold on potential and

actual customers.

The next most popular way of finding a blog was through personal

or professional networking sites (used by 17% of respondents in

the Ipsos Reid study).

About one in seven Internet users polled said they found blogs

through a news or company site. More than 40% of bloggers also

said they had bookmarked a blog once they found one that

interested them.

Many adults in Canada appear to consider the information

expressed in blogs relatively trustworthy, at least in certain

subject areas.

Two-thirds of the adult Internet users polled by Ipsos Reid said the

information in blogs was a “very” or “somewhat” reliable way to

keep themselves informed about new technology, for example,

and only 13% said this information was not at all reliable.

Internet Users in Canada Who Have Recently Visited aBlog, March 2007 (% of respondents)

Today 19%

Yesterday 10%

2-7 days ago 22%

Source: Ipsos Reid, "Ipsos Canadian Inter@ctive Reid Report" as cited inpress release, July 19, 2007

085955 www.eMarketer.com

Demographic Profile of Blog Visitors in Canada, March2007 (% of respondents in each group)

Gender

Male 36%

Female 31%

Age

18-34 45%

35-54 32%

55+ 21%

Education

High school or less 21%

Some post-secondary 36%

University graduates 40%

Total 34%

Source: Ipsos Reid, "Ipsos Canadian Inter@ctive Reid Report" as cited inpress release, July 19, 2007

085957 www.eMarketer.com

Internet Users in Canada Who Visit Blog Sites, by Age,April 30-May 5, 2007 (% of respondents)

13-17 73%

18-29 64%

Source: TNS Canadian Facts as cited in press release, June 11, 2007

084788 www.eMarketer.com

Page 16: Canada Internet-Users and Usage 2011

Canada Internet 16

What Canadians Do Online

When it comes to blogs focused on businesses, Canadians are

skeptical about the validity of information posted, perhaps

because they are aware of the mixed motives that may prompt

blog entries.

Only 4% said they considered information on blogs about

businesses “very” reliable.This low trust level reinforces the need

for advertisers to exercise caution in blog-related marketing and

to avoid any appearance of “fixing” blog postings.

085953

Most Canadians do admit to being influenced by blogs. One in 10

adult Internet users polled by Ipsos Reid thought that positive

comments about a product or service on a blog make them much

more likely to buy it, and just more than one-half said they would

be “somewhat” more likely to buy.

Hence the great attraction for advertisers who stand to benefit

substantially from this degree of leverage if a blog mention is

approving and seems genuine.

There is a downside, however. Negative blog comments have a

slightly greater effect than positive ones, something many

advertisers have already learned the hard way.

Ipsos Reid data indicate that 12% of Canadian Internet users said

negative comments about a product or service would make them

much less likely to purchase, and 54% say they would be

“somewhat” less likely to buy.

Bearing in mind that blogging is an active participation in the online

world and represents a visible contribution to online content, it is

not surprising that people involved in blogging are also more

involved with other aspects of online life than non-bloggers.

Ipsos Reid found that Internet users who are experienced users of

blogs—and contribute actively to them—are more likely to be

affected by what they read there about products and services.

Among self-described bloggers, 17% said negative comments

would make them much less likely to buy a product or service, and

17% said positive comments would make them much more likely

to purchase. (Remember that, in the general online population, the

comparable percentages were 12% and 10%, respectively.)

The same study found that bloggers also spend more time on the

Internet than their non-blogging compatriots, clocking up an

average of 23.4 hours a week actively engaged online, while non-

bloggers spend 15 hours.

In fact,bloggers appear more likely than non-bloggers to take part in

almost all the online activities that Ipsos Reid researchers asked about.

086501

Bloggers also report more time spent using the Internet while

engaged in other activities—watching TV, listening to the radio,

working or spending time with family and friends—than non-

bloggers, an average of 7.7 hours versus 5.2 hours weekly,

according to Ipsos Reid.

Social Networking

Blogging is not the only social medium that attracts Canadian

Internet users. Social networking sites, such as those that allow

sharing of music and video, seem to be even more popular.

084698

If eight in 10 Canadians online visited a social networking site in

April 2007, it highlights astonishing growth in this area in less than

a year.A number of sources appear to confirm a sharp uptake in

visits to these sites.

Reliability* of Information on Blogs about Businessesaccording to Internet Users in Canada, March 2007 (%of respondents)

Note: *when trying to form an opinionSource: Ipsos Reid, "Ipsos Canadian Inter@ctive Reid Report" as cited inpress release, July 19, 2007

085953 www.eMarketer.com

Not at all15%

Not very34%

Somewhat47%

Very4% Select Online Activities of Bloggers* vs. Non-Bloggers

in Canada, Q1 2007 (% of respondents)

Bloggers* Non-bloggers

Online banking 83% 65%

Comparison shopping for products 81% 65%

Purchasing products and services online 80% 62%

Clicking on Web site advertising 73% 50%

Note: *Bloggers are those Internet users who say they visit blog sites andalso contribute material to blogsSource: Ipsos Reid, "Blogging in Canada" as cited by Marketing Charts, April2007

086501 www.eMarketer.com

Social Networking, Multimedia and Blog Users inCanada, April 2007 (thousands of unique visitors and% reach)

Unique visitors

(thousands)

% reach

Social networking sites 18,452 80.1%

Multimedia* sites 18,247 79.2%

Blogs 14,685 63.8%

Total Internet audience in Canada 23,026 100.00%

Note: home and work locations; *sites that contain video clips, audio clipsor some other kind of interactive media such as shockwave/ flash etcSource: comScore World Metrix, provided to eMarketer, June 8, 2007

084698 www.eMarketer.com

Page 17: Canada Internet-Users and Usage 2011

Canada Internet 17

What Canadians Do Online

For example, during the last two months of 2006, just 16% of

Canadians reported visiting a social networking site in the

preceding 30 days, according to Ipsos Insight. But that was double

the number who had visited one before that.

085468

The increasing use of social networking sites by Canadians

reflected a wider growth trend during these months. China, India,

Germany and France also appear to have doubled the number of

people using social networking sites in December 2006. In the US,

visits to such sites actually tripled in the same period.

The Solutions Research Group (SRG) maintains that between

January and June 2007, Canadians again doubled their use of

these sites and represented the fastest-growing national

population on Facebook. Canadian membership of Facebook has

now passed two million, and almost one in 10 Canadian Internet

users now has a Facebook page, according to SRG.

In August 2007, mobile operator Rogers Wireless responded to the

apparent social networking craze by inking an exclusive

partnership with Fox Interactive Media’s MySpace. Owners of

some Rogers cell phones can now use their mobiles to post

comments and blog entries on MySpace, check mail, read

bulletins and alter their profiles.

As with most online innovations, younger Canadians are more

involved than older ones.The Rogers deal would seem to confirm

this, as MySpace is especially popular with younger people. More

than 80% of those visiting social networking sites during the first

week of May 2007 were between 13 and 17, according to TNS.

084785

Among respondents 50 and older, 67% said they did not use social

networking sites and preferred to keep in touch with family and

friends in other ways, such as by phone or e-mail.

But age is not the only factor here as 44% of the total sample felt

the same.And many people have other doubts about social

networking online.

Almost one in five said they did not really feel safe using social

networking sites, and 17% said their friends did not use them. In

addition, a rump population of 16% said they considered these

sites “stupid” and not worth joining.

Active* Internet Users in Select Countries WorldwideWho Have Recently or Ever Visited Social NetworkingWeb Sites, November-December 2006 (% ofrespondents)

South Korea

55%

11%

Brazil**

41%

6%

China**

27%

15%

Mexico**

26%

10%

US

24%

8%

UK

20%

8%

Canada

16%

9%

India**

16%

8%

Germany

14%

5%

France

12%

6%

Japan

9%

13%

Russia**

1%

2%

Within the past 30 days More than 30 days ago

Note: *in the past month; **urban sampleSource: Ipsos Insight, "The Face of the Web 2006" as cited in press release,July 5, 2007

085468 www.eMarketer.com

Internet Users in Canada Who Visit Social NetworkingSites, by Age, April 30-May 5, 2007 (% of respondents)

13-17 83%

18-29 74%

Source: TNS Canadian Facts as cited in press release, June 11, 2007

084785 www.eMarketer.com

Page 18: Canada Internet-Users and Usage 2011

Canada Internet 18

What Canadians Do Online

Online Gaming

TNS data suggest that, as of late spring 2007, online games came

third behind social networks and blogs in the social media stakes,

with 36% of Canadian Internet users taking part in them.

084789

Most popular were online poker and “live” games where the user

is the shooter, according to TNS. Massively multiplayer online

games (MMOGs) also have a strong following.

By contrast, the virtual world Second Life (often considered a game)

did not pull in many punters. Only 2% of Canadians polled said they

had sufficient interest in Second Life to create an avatar there.

Internet users in Quebec still lag slightly behind other Canadians in

their use of gaming sites.The rate of increase in these visits is

slower, too.

According to the “Ipsos Canadian Inter@ctive Reid Report,” the

number of unique English-speaking Canadian visitors to gaming

sites rose 38% between July 2005 and July 2006, and the number

of French-speaking visitors rose 33%.

Ipsos Reid does note that the home PC has not yet taken over as

the primary device used by Canadians who play games. Even

though 83% of respondents said that they own a home computer,

38% of adults also own a game console and 23% have a handheld

game system.

There are several reasons why consoles and handhelds remain an

important force in the market. One is that Sony’s PlayStation 2 is

still a bestseller in Canada. Second, several new-generation

consoles, such as the PlayStation 3 and the Nintendo Wii, have

done well since their introduction in November 2006.Third,

Canada is home to many successful firms developing games for

consoles and consumer awareness is high.

Further, the Canadian government announced in November 2006

that it would provide investment for locally produced video games

destined for consoles, as well as continuing tax incentives that

benefit game developers.

These and other factors should keep console and video game

sales strong through 2007 and the early part of 2008.The market

for console and handheld games will grow at a compound annual

growth rate of 5.4% between 2006 and 2011, according to

projections by PricewaterhouseCoopers (PwC).

Games for PCs are expected to generate slightly higher revenue in

2007 before beginning to decline again in 2008. Meanwhile,

Canada’s excellent broadband penetration will encourage

continued growth in online gaming.

PwC sees the presence and expansion of broadband in Canada as

one of the key influences on the game-playing habits of the

country.Thanks to broadband, online games already account for

more of the gaming market in Canada than in other regions.

PwC researchers believe that in 2006 online games represented

28% of Canada’s gaming market, compared with 21% in Asia

Pacific, 13% in Europe, the Middle East and Africa (EMEA) and 12%

in the US.

Almost two million Canadians were playing games online in 2006,

according to PwC, and nearly 90% of online gamers are believed to

have broadband connections.

As broadband subscriptions rise to roughly 12 million in 2011, the

number of people playing games online is expected to reach four

million, one-third of all broadband users.

PwC also sees spending on online games rising from US$248

(C$280) in 2006 to US$476 (C$585) in 2011, a compound annual

growth rate of 13.9% in US dollar terms.

Development of online games—and the advertising to go with it—

should be spurred by recent research from Massive, an in-game

advertising specialist acquired by Microsoft in 2006.

Massive’s study indicates that in-game ads can increase

consumer ad recall by as much as 41% (on average), ad rating by

69%, brand rating by 37% and brand familiarity by 64%. Massive’s

data also suggest that in-game ads can boost purchase

consideration by an average of 41%.

The fastest-growing market for games is the wireless platform.

Of the 18.7 million Canadians who were mobile phone subscribers

in 2006, PwC estimates that 2.4 million (13%) downloaded a game.

That proportion is projected to rise to 30% in 2011 when mobile

subscriptions will approach 29 million.

PwC suggests that spending on games for wireless devices will

rise more than 150% between 2006 and 2011, from US$89 million

(C$101 million) to US$230 million (C$283 million).

However, it is not yet clear how much of Canada’s wireless gaming

will be Internet-based or how quickly online gaming with mobile

devices will take off. Current pricing structures make data

operations via mobile phones relatively expensive for Canadians.

In the short term, gaming online through mobile phones will be an

extremely small market.

Internet Users in Canada Who Use Select OnlineSocial Media, April 30-May 5, 2007 (% of respondents)

Social networks 53%

Blogs 50%

Play online games 36%

Source: TNS Canadian Facts as cited in press release, June 11, 2007

084789 www.eMarketer.com

Page 19: Canada Internet-Users and Usage 2011

Canada Internet 19

What Canadians Do Online

E-Commerce

Statistics Canada has reported that total Canadian online sales rose

to almost C$50 billion (US$44.25 billion) in 2006,posting a fifth

consecutive year of double-digit growth. Internet retail sales hit C$4.7

billion (US$4.16 billion),almost twice the level recorded for 2005.

In the US, by comparison, total online consumer spending

including travel was US$170.8 billion (C$193.0 billion) in 2006,

according to comScore.

Government figures indicate that more than 15% of Canadian

retail companies sold online last year, compared to 10% in 2005.

But even online retail sales constituted barely 1% of total retail

sales in the country in 2006.

Overall, the number of Canadian firms selling online was about

8%, up just 1% on 2005. Clearly the majority of Canadian

companies are not yet involved in e-commerce, and more than

two-thirds of all e-commerce remains B2B.

Thus there is still a long way to go before Canadian consumers can

enjoy the level of online access to retail goods and services that

Internet users in many other countries have.

Within the limits of the current online marketplace, Canada’s

Internet users are enthusiastic shoppers. eMarketer calculates

that almost 70% of Canadian Internet users 18 and older are

shopping, if not buying, online.

eMarketer estimates that the numbers of online shoppers and

buyers in Canada will both continue to rise in the next two years.

More of the people who research purchases online will also

become online buyers.

079081

079083

It is worth noting that 65.6% of Internet users 18 and older in the

US were online buyers in 2006 compared with 53.3% in Canada. In

the US, average annual spending per online buyer was US$972

(C$1,098) last year, compared with US$891 (C$1,007) in Canada.

But eMarkerter projects that the average amount spent online by

Canadian buyers is set to pass US$1,000 (C$1,090) this year, a rise

of almost 14% in one year.

079095

The recent J.C.Williams Group poll of 1,500 online buyers and 500

Internet users who buy only offline produced similar findings.

These data suggest that the average spend per online buyer in

Canada reached C$454 (US$409) in the six months to April 2007

(C$7 more than a year earlier).Also, items in more categories were

bought more often than in the same period the year before.

Online Shoppers in Canada, 2005-2009 (millions and %of Internet users)

2005 10.8 (64.4%)

2006 11.9 (67.9%)

2007 12.7 (69.2%)

2008 13.6 (71.4%)

2009 14.6 (74.4%)

Note: ages 18+Source: eMarketer, December 2006

079081 www.eMarketer.com

Online Buyers in Canada, 2005-2009 (millions and % ofInternet users)

2005 8.1 (48.3%)

2006 9.3 (53.3%)

2007 10.4 (56.2%)

2008 11.3 (59.5%)

2009 12.3 (63.0%)

Note: ages 18+Source: eMarketer, December 2006

079083 www.eMarketer.com

Average Annual Amount Spent Online* by OnlineBuyers in Canada Ages 18+, 2005-2009 (% increase**vs. prior year)

2005 $766

2006 $891 (8.7%)

2007 $1,014 (13.8%)

2008 $1,144 (12.8%)

2009 $1,295 (11.2%)

Note: Converted to US$ at average annual exchange rates (projected forfuture years); *includes online travel, event ticket and digital downloadsales; **based on C$ figureSource: eMarketer, December 2006

079095 www.eMarketer.com

Page 20: Canada Internet-Users and Usage 2011

Canada Internet 20

What Canadians Do Online

In the 18 categories measured by the study, purchase incidence

rose between 1% and 5% on the same period the previous year.

Music and DVDs, consumer electronics, and toys and video games

registered the greatest gains.

086506

These rates of change are hardly meteoric, however. It is hard to find

any study of online shopping behavior in which Canada’s Internet

users do not consistently score lower than their US neighbors.

For example, eMarketer’s comparative estimates of US and

Canadian online buyer numbers, cited above, are close to Media-

Screen’s figures.

According to these data, 64% of US adult broadband users age 18

and older say they “regularly” shop for products or services in a

typical month, and just 53% of Canadians do so. (The gap may

even be greater as data for Canada were collected in April 2007

and data for the US were collected in August 2006.)

Although almost one-quarter (23%) of US online buyers use an e-

wallet or passport payment service, only 16% of Canadians said

they use this option. Media-Screen also found less predictable

differences between Canadians and Americans where online

shopping was concerned.

Of the study respondents, more Canadians than Americans could

be described as “everyday pros.”Where other user segments

might go online chiefly to have fun or stay connected, everyday

pros like to use the Web to “get things done.”They are also more

affluent than other user segments.At this point, however, the two

national populations diverge.

In the US, everyday pros do more shopping and buying online than

other users, but that is not the case in Canada.The affluence of

Canada’s everyday pros does not seem to correlate with more

online shopping or spending.

National traits and habits aside, Canadian e-commerce should rise

markedly in the next few years.

One reason is that more retailers—inside and outside the

country—are beginning to offer Canadians real choice and value

and developing sites and shipping options to suit.

American-based retailers in particular are taking steps to tailor

their offerings more to the needs and preferences of Canadian

customers, something many did not do before.The fact that a

number of these retailers see demand slowing at home is a real

incentive, too.

Nonetheless, there are still segments of the Canadian population

less inclined to buy online.

Older Internet users are definitely more reluctant, with 45% of

those 55 and older saying they are “very concerned” about online

security and unwilling to use their credit cards on the Internet,

claim researchers from Ipsos Reid.About 37% of those 18 to 54

expressed the same security worries.

Residents of Quebec are another hesitant group.

E-commerce has never taken off in the French-speaking province

to the extent it has elsewhere in Canada. It was much more

popular in 2006 than in 2001 but did not pick up much during 2006

itself, according to CEFRIO.

In October 2006, just 21.2% of Quebecers said they had bought

something online in the previous month.

Here, too, fear of security flaws and fraud is a big part of the

problem, CEFRIO found.

In 2006, an average 41.4% of Internet users in Quebec thought

paying online was “very” or “sufficiently” secure.This percentage

rose to 46.1% in October last year, but that leaves at least 53% who

thought that using their credit cards online was unsafe.

Even as the Internet becomes more familiar and the online buying

habit grows in other parts of Canada, Quebec does not seem to be

following the trend.

Products Purchased Online by Internet Users inCanada, 2006 & 2007 (% of respondents)

Books/magazines

33%

34%

Music/DVD/videos

27%

32%

Clothing and accessories

21%

23%

Consumer electronics

16%

21%

Toys, video games

16%

20%

Health and beauty items

15%

17%

2006 2007

Source: Visa and Yahoo! Canada, "2007 Canadian E-commerce and SocialNetworking Summary conducted by J.C. Williams Group, July 3, 2007

086506 www.eMarketer.com

Page 21: Canada Internet-Users and Usage 2011

Canada Internet 21

What Canadians Do Online

It is more common for Quebec residents to research a product

online and then buy it offline. But this behavior is not changing much

either, apparently. In 2005, 28% of adult Internet users in Quebec

were researching online before buying elsewhere, according to

CEFRIO. In 2006, the proportion had risen to just 28.3%.

It may be that Quebecers are not finding sites that offer

satisfactory product information or comparison-shopping. Or

perhaps the number of sites in French—still preferred by most

Quebec residents—is disappointing.

Retailers and other companies that target Quebecers with useful

product information and comparison facilities could seize a

significant advantage in this part of the country.

086496

The J.C.Williams study asked respondents throughout Canada

who did not buy online why they avoided doing so.

More than one-third (37%) said they had no need to buy on the

Internet (up from 36% in April 2006). Just less than one-half (48%)

said they worried about using their credit card online (up from 42%

a year earlier), and 44% (8% more than in 2006) said they did not

want their private information to be accessible on the Web. (The

researchers speculated that recent news of online data breaches

had helped to push up levels of distrust among their sample.)

Just as active Canadian bloggers appear more engaged in all kinds

of online activities than non-bloggers, the same is true of online

buyers, according to J.C.Williams.

Among online buyers, 87% said they had read consumer or

product reviews online, compared with 68% of offline buyers.

More than 94% of online buyers had watched video clips online

versus 83% of offline buyers.The same percentage had viewed

pictures on the Internet, compared to 86% of shoppers who did

not buy online.

A study conducted by J.C.Williams for Visa and Yahoo! Canada

also produced firm evidence that Internet users who shop online

are far more likely than non-buyers to write a blog entry or an

online product review, for example.

085628

Both online and offline buyers share some dislikes. More than two-

thirds (68%) of the online buyers polled by J.C.Williams said they

were concerned about their privacy (this rose to 74% among

offline buyers).Almost as many (63% of those buying online) said

they do not like receiving unwanted marketing messages.

Fewer respondents (57%) among the offline buyers complained

about this, possibly because they do not receive as many of

these messages.

Mobile Internet Users

Government statistics suggest that more than 55% of Canadians

had a mobile phone at the end of 2006.

083953

Adult Internet Users in Quebec Who Have Researchedor Bought Products Online, January, April & July 2006(% of respondents)

January 2006

14.4%

28.6%

April 2006

12.9%

30.4%

July 2006

12.3%

25.9%

Bought online Researched products online

Source: Centre francophone d'informatisation des organizations (CEFRIO),"NETendances 2006," conducted by CEFRIO and Léger Marketing, February2007

086496 www.eMarketer.com

Select Social Networking Activites of Online Buyersvs. Internet Users* in Canada, April 2007 (% ofrespondents in each group)

Written a blog

35%

21%

Written an online product review

29%

9%

Posted online video content

19%

8%

Online buyers (n=1,500) Internet users (n=500)

Note: *who do not make purchases onlineSource: Visa and Yahoo! Canada, "2007 Canadian E-commerce and SocialNetworking Summary conducted by J.C. Williams Group as cited in pressrelease, July 3, 2007

085628 www.eMarketer.com

Mobile Phone Subscribers and Penetration in Canada,Q4 2005 & Q4 2006 (millions, % of population and %increase vs. prior year)

Q4 2005 Q4 2006 % change

Subscribers 16.64 18.04 8.4%

Penetration 51.4% 55.1% 7.2%

Source: Statistics Canada as cited in press release, May 14, 2007

083953 www.eMarketer.com

Page 22: Canada Internet-Users and Usage 2011

Canada Internet 22

What Canadians Do Online

Data from BBM Analytics’ “CyberTRENDS” report put the 2006

end-of-year number of subscribers slightly higher at 58%.The

same study provided an overview of how many Canadians owned

other mobile devices as well, and what they used the gadgets for.

086504

Of course most of these gadgets and activities do not require

Internet access.Also, the number of Canadians accessing the

Internet via a cell phone or PDA has lagged substantially behind

the level of overall mobile phone use.

Mobile Internet penetration reached 21% of cell phone owners in

2006, according to the “Ipsos Canadian Inter@ctive Reid Report.”

In 2003, according to the same source, only one in 10 Canadians

accessed the Internet with a mobile device.

The CRTC estimates far greater penetration, saying that 58% of

Canadians used a cell phone to access the Internet in 2006. But

because estimates from other sources are so much lower, it

seems likely that the CRTC is calculating potential rather than

actual use.This is based on the Internet readiness of modern

mobile phones, not the way they are used from day to day.

The fact is that Canada suffers from some serious handicaps in

the race to get its residents online via mobile.

For one, mobile operators generally seem to have little money to

invest in network expansion. Coverage is relatively good in urban

environments and other areas where population density is high.

But enormous tracts of the country are underdeveloped in

network terms, which inhibits further uptake of mobile services

and disadvantages Canadians in more remote areas.

Neither the government nor the commercial community will find

this situation viable in the long term. Instead, both government

and commercial entities will want to reach all citizens with

efficient digital channels. Even in towns and cities, networks will

need regular upgrading to meet the increasing challenge of

mobile traffic.

Pricing is the other big issue facing the government and providers

of mobile services in Canada.

Historically, Canadian mobile operators have prioritized voice over

data traffic. Current networks are slow when it comes to data

transfer, and operators typically charge subscribers by the amount

of data they download or upload, which makes services

prohibitively expensive.

Several industry observers have commented on this state of

affairs, pointing out that Canada, often a leader in technology and

civic responsibility, is falling behind the rest of the world in catering

for mobile data.

In the US and most Western European countries, operators

generally offer reasonably priced plans that include unlimited data

downloads via mobile.

AT&T, the sole service provider for the Apple iPhone, supplies

unlimited data transfers for US$20 (C$21.80) per month, for

example. Prices of monthly data plans in Canada are higher even

than those in some Eastern European,Asian and African nations.

086499

Now that the Internet is moving into the mobile channel, this

business model is not sustainable or popular. Operators stand

accused of fostering an uncompetitive market that does not meet

the needs of Canadian businesses or consumers.

Cheapest Rates for Mobile Data Transfer* amongMobile Operators in Canada As Compared with Ratesof Operators in Other Countries, April 2007

Vodafone (New Zealand) $41

T-Mobile (US) $58

Sprint (US) $69

Terracom (Rwanda) $74

Telsra (Australia) $83

Vodafone (UK) $102

Telus (Canada) $375

Bell (Canada) $850

FIDO (Canada) $1,600

Rogers (Canada) $1,600

Note: in US$; *cost to transfer 500MB per month or 100 minutes at700kB/secSource: ThomasPurves.com as cited in press release, April 9, 2007

086499 www.eMarketer.com

Mobile Device Usage in Canada, by Gender, December2006 (% of respondents)

% of cellphone, Blackberry or PDA owners who used thesedevices to:

Cellphones

MP3 player

Webcam

iPod

PDA

Blackberry

Take pictures

Record video

Obtain news or weather

Obtain sports scores

Watch television

Male

53%

62%

64%

58%

75%

64%

58%

73%

78%

87%

59%

Female

47%

38%

36%

42%

25%

36%

42%

27%

22%

13%

41%

All respondents

58%

14%

9%

7%

5%

4%

23%

8%

6%

4%

2%

Note: ages 16+Source: BBM Analytics, "CyberTRENDS," December 2006 as cited byCanadian Radio-television and Telecommunications Commission (CRTC),"Broadcasting Policy Monitoring Report 2007," July 2007

086504 www.eMarketer.com

Page 23: Canada Internet-Users and Usage 2011

Canada Internet 23

What Canadians Do Online

Mobile device manufacturers are certainly looking for change.A

representative for RIM, which makes the BlackBerry, commented

that the firm might sell “eight or nine times” more devices if

Canadian mobile data prices were comparable to fees elsewhere.

Mobile phone makers are also frustrated by a system that

discourages consumers from buying Internet-enabled,

next-generation phones. Consumers also want to see a

different approach.

High data prices mean Canadians hardly use the mobile Internet

and cannot take advantage of new services available elsewhere. If

not corrected, development of the mobile Internet market in

Canada will be undermined, leaving the country and its

consumers at a significant disadvantage.

At the same time, Canadians do not seem willing to pay any

premium for the mobile broadband that would make robust

mobile services possible. Overall, consumers polled in 2006 said

that they would choose to pay less, rather than replace their fixed

broadband with mobile.

083025

Mobile Online Activities

In these circumstances, it is not surprising that Canadians have

been slower than consumers in many other developed countries

to use their mobiles for multimedia, such as video capture.

Telephia has reported that just 4% of Canadians took video

pictures with their phones in 2006.

077545

An April 2007 survey of professionals age 30 to 54 by Palm Canada

and Léger Marketing did spot some encouraging developments.

Canadians in this age group who have mobile gadgets are

gradually doing more with them.

Much of this mobile activity is work-related.The study found that

76% of respondents checked e-mail outside their working hours,

and 60% felt they had joined the “always-on” brigade.

A similar number owned up to checking e-mail or voicemail on

their devices before going to bed, and 37% admitted they had used

their mobile to do work while at a social or family event. More than

one-quarter confessed to answering e-mails during dinner.

But about 60% of these consumers are also turning to a phone,

PDA or other mobile device for entertainment, in the broadest

sense of the word.

One in five said they use a smartphone or another multifunctional

device. More than 40% listened to MP3 music tracks, 33% listened

to the radio and 19% watched videos. One in 10 visited social

networking sites via mobile.And 73% said they thought e-mailing

on mobile devices could be entertainment as well as work.

The Telecommunications Industry Association (TIA) and Wilkofsky

Gruen Associates have also published figures suggesting that

consumer use of mobile data is finally taking off.

Average Monthly Internet Access Spending andPremium Amount that Internet Users in SelectCountries Worldwide Would Pay for MobileBroadband Services, 2006

Current Internet spending

Premium would pay for

mobile broadband

UK $33.0 $9.1

US $31.2 $1.9

Australia $28.4 $1.3

Spain $37.9 $0.9

China $8.3 $0.2

Canada $28.7 -$0.7

France $29.6 -$3.0

Taiwan $20.3 -$3.5

Italy $40.1 -$6.8

Germany $32.4 -$7.6

South Korea $30.3 -$9.7

Japan $32.7 -$11.5

Note: All figures are in US$; negative figures represent consumers who arenot willing to pay a premium and would in fact choose to pay less toreplace their fixed broadband with mobileSource: Parks Associates, "Mobile Broadband Wireless: Path toward 4G,"April 2007

083025 www.eMarketer.com

Adoption Rate* for Mobile Phone Video Capture in theUS, Canada and Select Countries in Western Europe,2006

Spain 15%

Italy 14%

UK 12%

Sweden 10%

France 9%

Germany 9%

Canada 4%

US 3%

Note: *percent of mobile phone users who use their mobile phones to takevideosSource: Telephia as cited in press release, October 12, 2006

077545 www.eMarketer.com

Page 24: Canada Internet-Users and Usage 2011

Canada Internet 24

What Canadians Do Online

For example, these organizations concluded that Canadian

revenue from mobile video games will grow 44% in 2007, to reach

US$167 million (CS$182 million).

Similarly, revenue from mobile music downloads is expected to

rise from US$79 million (C$86 million) in 2006 to $111 million

(C$121 million) in 2007, a gain of 41% in US dollar terms.

081751

Conclusion

Canada has a long-standing commitment to the

Internet and broadband in particular.The online

population continues to rise in substantial

increments, and robust broadband infrastructure

will bring high-speed services to almost all

citizens within a few years.

Most Canadians are eager participants in the online world and

keen to take advantage of its benefits.The remarkable growth of

blogging and social networking by Canadians is just one sign of

their enthusiasm.The high level of participation in online banking

and comparison-shopping is another.

Some segments of the population, such as those 55 and older and

French-speaking residents, have historically been less active online.

With older citizens, problems of access and incentive continue,

especially as people can become less confident with age and may

resist the challenges of mastering new technology.The Canadian

government continues its efforts to bring this group online.

In Quebec there is growing awareness that the Internet is here to

stay and should be made to work for individuals and communities.

In many respects, the Web may even be a catalyst for positive

changes that no other influence could bring about.

There are temporary hurdles to clear in the areas of e-commerce

and mobile Internet access.

Canadian e-commerce, now on a healthy upward path, will

continue to expand and deliver more of what consumers

want.This in turn will make online channels even more attractive

to advertisers.

Mobile Internet provision is a harder nut to crack. Mobile

operators are being forced to rethink their business models and

may need to forgo short-term profit in favor of long-term potential.

All in all, Canada looks set to continue in its role as a world leader

in Internet provision and usage.

Mobile Game and Music Revenues in Canada,2002-2010 (millions)

2002

$5

$1

2003

$14

$4

2004

$27

$17

2005

$72

$52

2006

$116

$79

2007

$167

$111

2008

$214

$144

2009

$249

$186

2010

$288

$234

Mobile video games Mobile music

Note: US$Source: Telecommunications Industry Association (TIA), Wilkofsky GruenAssociates, "2007 Telecommunications Market Review and Forecast,"January 2007

081751 www.eMarketer.com

Page 25: Canada Internet-Users and Usage 2011

Canada Internet 25

Related Information and Links

Related Links

Statistics Canada

http://www.statcan.ca

comScore Media Metrix

http://www.comscore.com

J.C. Williams Group

http://www.jcwg.com

PricewaterhouseCoopers

http://www.pwc.com

Contact

eMarketer, Inc. Toll-Free: 800-405-0844

75 Broad Street Outside the US: 212-763-6010

32nd floor Fax: 212-763-6020

New York, NY 10004 [email protected]

Report Contributors

Mickey Alam Khan Editor in Chief

Mike Chapman Editorial Director

Daniel McMahon Copy Editor

Krista Garcia Senior Researcher

Dana Hill Production Artist

James Ku Data Entry Associateand Production Artist

Hilary Rengert Senior Researcherand Production Artist

Allison Smith Senior Editor

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